HKEx plans yuan-denominated gold contract – sources

Hong Kong Exchanges (HKEx) plans to roll out a gold contract in Hong Kong denominated in the yuan as soon as next year, sources close to discussions told FastMarkets.

The contract is likely to appeal given the region’s affinity for gold kilobars of 99.99 percent purity and the fact it will offer physical delivery in Hong Kong vaults, the sources added.

But many of the contract’s specifications are still to be decided while negotiations continue, sources suggested.

It faces strong competition – already serving the region’s needs for yuan-denominated gold are the Shanghai Gold Exchange and its international subsidiary, the Shanghai Gold Exchange International (SGEi).

HKEx suspended trading on its dollar-denominated gold futures contract in March, citing its failure to gain traction among investors.